The average overnight interbank rate has dropped by 900 basis points from a year-to-date high of 25.1% on June 27 since the Bank of Zambia started implementing Open Market Operations (OMOs) last week. The overnight interbank rate is the rate at which banks lend to one another on a short-term basis. The rate was at 15.96% today:
The Lusaka Stock Exchange (LuSE) has continued-on from a strong 2013 to close the first half of 2014 at 6,111.15, up 15.3%. The market capitalization was at K28.1bn (K62.3bn including Shoprite) as of yesterday, June 30th 2014:
Bank of Zambia recorded a weak Treasury bill sale at auction 13 of 2014. The auction received bid worth K87.7m with the 364 day t/bill accounting for 85% of the total amount bid. The central bank allocated the full K87.7m:
Kwacha continues fall, ends the week at 6.61
The Kwacha hit a record low of K6.71 per $US dollar before closing the week at K6.61:
First quarter 2014 infrastructure spending and public debt figures released
K1bn was released for investments and special projects and allocated as follows:
The Bond and Derivatives Exchange (BaDEx) went live and executed its maiden live transaction yesterday at 14:49pm – a June 2014 US Dollar/ZM Kwacha futures contract. The transaction was between Banc ABC (who is a trading member) and their client. This was an historic transaction for one of a handful of Bond and Derivative Exchanges in Africa. BaDEx was incorporated in 2009 and became a licensed exchange in 2011. It is regulated by the Securities and Exchange Commission (SEC) of Zambia.
Two weeks before the $1bn bond offering, there were investor roadshows in Los Angeles, San Francisco, Boston, New York and London (the same destinations as before the 2012 offering). The final allocations by industry were as follows:
The company announced the following in a press release:
At the Extraordinary General Meeting (EGM) held on Monday 24 February 2014 at the Southern Sun Hotel in Lusaka, the members of ZCCM Investment Holdings Plc resolved to appoint a Non-Executive Director to represent the Minority Shareholders. Following this resolution, ZCCM-IH Plc is pleased to announce the appointment of Mr Philippe Taussac as a Non-Executive Director to represent the minority shareholders on the ZCCM-IH Board. Mr. Taussac brings to the Board many years of Business Management experience. ZCCM-IH is confident that he will add value to the Company.
World Bank Enterprise Survey - Zambia 2013
The World Bank did an enterprise survey of 720 firms operating in Zambia (Lusaka, Kitwe, Ndola and Livingstone) which highlighted the biggest obstacles faced by businesses in this country. The results were as follows:
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *